How much does a propane tank installation cost?
How much does a propane tank installation cost?
$250 – $1,000 above-ground cost (labor only)
$300 – $3,000 above-ground cost (tank + installation)
$1,000 – $2,500 below-ground cost (labor only)
$1,500 – $5,000 below-ground cost (tank + installation)
Average propane tank installation costs
Propane tank installation costs $300 to $3,000 for an above-ground tank or $1,500 to $5,000 for an underground tank, including the tank and labor. Installing a 500-gallon propane tank costs $1,000 to $2,500 for heating an average home. The cost of a propane tank depends on the size and installation method.
| Tank size (gallons) | Average total cost* |
|---|---|
| Under 100 | $20 – $65 |
| 100 | $300 – $500 |
| 120 | $400 – $900 |
| 250 | $500 – $1,200 |
| 330 | $700 – $1,500 |
| 500 | $1,000 – $2,500 |
| 1,000 | $2,000 – $5,000 |
*Includes propane tank and installation. Cost data is from research and project costs reported by HomeGuide members..
Propane tank costs by location
The main price factors when installing a propane tank are the size of the tank and where it is installed. Smaller tanks are often installed above-ground for easy refilling. Larger tanks are often buried to hide the unsightly tank.
| Tank type | Average installed cost |
|---|---|
| Above-ground tank | $300 – $3,000 |
| Below-ground tank | $1,500 – $5,000 |
Above-ground propane tank
An above-ground propane tank costs $300 to $3,000 installed, depending on the tank size and location. Above-ground tanks are smaller and cheaper to install and maintain. These smaller propane tanks do not require excavation and are typically installed on a concrete slab.
Installing an above-ground propane tank may include these additional labor and equipment costs:
A new concrete slab costs $5 to $10 per square foot installed.
Gas line installation costs $12 to $25 per linear foot for materials and labor.
Trenching costs $5 to $12 per linear foot.
Land clearing costs $1 to $2 per square foot.
Underground propane tank
Underground propane tanks cost $1,500 to $5,000 with installation and are less of an eyesore since they are buried underground. Below-ground tanks are usually larger and more expensive to install, requiring heavy equipment for excavation. Excavation costs $100 to $300 per hour for an excavator and operator.
Underground tanks are safer and offer better temperature regulation in extreme temperatures.
Propane tank prices by brand
There are several nationwide propane delivery services that deliver propane to your home. These services are primarily for larger tanks. For smaller portable tanks, most people use tank exchange programs at home improvement or convenience stores, rather than paying minimum delivery fees.
| Brand | Average tank price* | Tank sizes available |
|---|---|---|
| AmeriGas | $300 – $1,200 | 100, 120, 250, 300, 500, 750, 1,000 gallons |
| Blue Rhino | $15 – $65 | 5, 15, 20, 30, 40, 60, 100 pounds |
| Flame King | $25 – $400 | 1, 10, 11, 20, 33.5, 40, 50, 60, 100 pounds |
| Ferrellgas | $50 – $250 (portable) $300 – $1,200 (permanent) |
10, 20, 30-pound portable tanks 100, 250, 500-gallon permanent tanks |
*Tank unit only. Labor not included.
AmeriGas
AmeriGas is a well-known propane delivery service, with prices starting at $300 for a 100-gallon tank and reaching up to $1,200 for a 500-gallon tank, not including installation. AmeriGas offers a variety of tank sizes and services but may not be available in all areas.
Blue Rhino
Blue Rhino is not a propane delivery service but offers a convenient tank exchange program. The widely available grill-size propane tanks are sold at local suppliers for $15 to $25 for tank exchanges and up to $65 to purchase a new tank.
Flame King
Flame King refillable propane tanks are sold at Lowes, Home Depot, and Costco. Prices range from $25 for a 1-pound cylinder up to $400 for a 100-pound tank, excluding installation. Flame King's refillable tanks are eco-friendly and compatible with most appliances that use disposable tanks.
Ferrellgas
Ferrellgas is a nationwide company offering propane tank rental, tank installation, and will-call services, which allow you to call and schedule delivery as needed. Tank prices range from $50 to $250 for a small portable tank to $300 to $1,200 for a larger permanent tank, not including installation labor.
Propane tank installation cost factors
Propane tank installation costs depend primarily on the tank size and whether the tank is above or below ground. The table below shows the average cost breakdown for both types.
| Installation factors | Average cost for above-ground tank | Average cost for underground tank |
|---|---|---|
| Tank | $50 – $2,000 | $500– $2,500 |
| Installation labor | $100 – $500 | $200 – $800 |
| Concrete pad | $75 – $200 | N/A |
| Connect gas line costs | $75 – $300 | $300 – $700 |
| Excavation / trenching | N/A | $500 – $1,000 |
| Total installed cost | $300 – $3,000 | $1,500 – $5,000 |
Other factors that influence the cost include:
Tank location – Underground propane tanks are more expensive than above-ground tanks. Also, the further the tank is to the street, the more piping is required for filling.
Site prep – Above-ground tanks require a cement pad, while buried tanks require excavating a hole with heavy equipment which increases costs.
Tank material – Steel propane tanks are more durable and expensive than aluminum tanks, but the newer fiberglass tanks are cheaper and lighter than metal.
Inspections and permits – Permits for installing a propane tank cost $25 to $50, while annual inspections cost $50 to $75 to check for leaks in a buried tank.
New vs. used
New tanks are more expensive, come with a warranty, and come with a fresh hydrostatic test, ensuring the tank can withstand high pressure.
Used tanks are cheaper but have no safety guarantee and must be tested and certified by a propane dealer.
Full vs. empty – By law, larger tanks are sold empty. Grill-size cylinders are usually sold full.
Recertification costs – Portable propane cylinders under 100 lbs. require periodic recertification to ensure they are safe to transport. Recertification costs $40 to $60 every 5 years to 12 years based on the date of manufacture.
Contract vs. will-call services – Many companies add an extra delivery fee for customers who prefer "will-call" ordering rather than regularly scheduled fill-ups.
Add-on costs
Old tank removal – Removing an above-ground tank costs $50 to $200, while a buried tank removal costs about $500.
Tank relocation – Moving an above-ground tank costs $100 to $200 for unhooking, moving, and reconnecting it on a new concrete pad. Moving a buried tank costs $1,000 to $1,500 to dig up, excavate a new hole, fill in the old hole, move the tank, and reconnect it.
Delivery fees – Standard minimum delivery costs $25. Expedited delivery within 3 days costs $200 extra, while emergency delivery within 1-day costs an extra $300.
Hazardous materials handling fee –Most companies charge a $10 hazmat fee for transporting hazardous propane.
Early termination fees – Canceling propane service before the end of a contract costs $100 to $250, depending on the company.
Installation labor
Underground propane tanks are larger and have higher labor costs of $1,000 to $2,500 to cover the costs for excavation, gas line trenching, and tank installation. Above-ground propane tanks cost $250 to $1,000 for labor, which includes pouring a concrete pad, installing gas lines, and installing the tank.
The labor cost for an underground propane tank ranges from $1,000 to $2,500 for the excavation, gas line trenching, and tank installation. Above-ground propane tank installation labor costs $250 to $1,000, which includes pouring a concrete pad, installing gas lines, and installing the tank.
Tank filling
Large propane tanks are typically delivered empty and then filled for $3 to $5 per gallon, on average. The cost of filling a tank depends on the tank size, the price of propane in your area, and whether your tank is above or below ground.
Propane prices tend to be higher in the winter when propane heat is in high demand.
Buying vs. renting
The upfront costs of buying a propane tank are higher than renting one, but over time you save money if you own the tank. Owning the tank also allows you to choose your own propane supplier and negotiate better prices.
Renting a propane tank costs $25 to $150+ per year, plus the cost of filling the tank. Renting a tank is cheaper upfront, puts the responsibility for repairs and maintenance on the propane company, and allows you to simply transfer your propane service to a new location if you move.
Propane tank refill costs
Propane tank refills cost as little as $15 to $25 for a propane grill cylinder and up to $4,000 for a tank able to heat a large home. When estimating tank refill prices, remember that only 80% of a tank is filled with propane, leaving room at the top for expansion.
| Tank size | Tank capacity (gallons) |
Average refill cost* | Uses |
|---|---|---|---|
| 20 lbs. | 4.6 | $15 – $25 | Propane grills or patio heaters |
| 100 lbs. | 23 | $70 – $120 | Single appliances such as a cooktop |
| 120 gallons | 96 | $300 – $500 | Hot water heater or a small appliance like a cooktop |
| 250 gallons | 200 | $600 – $1,000 | Supplemental heating or 2 home appliances including a water heater, generator, or pool heater |
| 330 gallons | 264 | $800 – $1,300 | Multiple propane appliances such as a water heater, stove, and a clothes dryer |
| 500 gallons | 400 | $1,200 – $2,000 | Home heating or homes with 2-3 propane appliances |
| 1,000 gallons | 800 | $2,400 – $4,000 | Home heating for larger homes or those with all appliances running on propane |
*Based on $3 to $5 per gallon propane costs.
Propane tanks are rarely empty when being refilled, so don't be surprised when the tank refill is not equal to the full tank size.
Propane usage cost estimator
Calculating how much propane gas you will use per month depends on the size of your home and the number of appliances using propane heat. A 2,000-square-foot home in a cold climate uses around 800 gallons of propane per year if the heater and appliances run on propane.
| Appliance | Estimated monthly usage (gallons) | Average monthly cost per appliance* |
|---|---|---|
| Furnace | 80 | $240 – $400 |
| Fireplace | 16 (1 – 3 gallons per hour) | $50 – $80 |
| Water heater | 20 (5 gallons per month/person) | $60 – $100 |
| Cooktop | 5 | $15 – $25 |
| Clothes dryer | 5 | $15 – $25 |
*Based on $3 to $5 per gallon propane costs.
Propane tank FAQs
Who installs propane tanks?
Propane tanks can be installed by a variety of professionals, including:
Propane suppliers – Many propane suppliers offer tank installation services as part of their propane delivery and maintenance plans.
Gas fitters – Gas fitters are licensed professionals who are qualified to install and maintain gas appliances and systems, including propane tanks.
Plumbers – Plumbers are qualified to install propane tanks, as long as they have the proper certifications.
Homebuilders – During home construction, the builder may offer to install a propane tank as part of the home building process.
Can I install my own propane tank?
In most cases, you should not install your own propane tank. Propane tank installation is a complex process with several safety regulations that must be followed. Hire a trained professional to ensure the tank is installed correctly and safely.
Do I need a permit to install a propane tank?
You will likely need a permit to install a new propane tank. Permits for propane tank installation cost $25 to $50, depending on where you live.
Where can you install a propane tank?
Propane tank location regulations vary from state to state, but in most areas, the tank must be installed at least 10 feet away from any building or source of ignition, like a furnace, water heater, or grill.
Propane tanks must be installed outside in a well-ventilated area to prevent the hazardous buildup of propane gas.
Getting estimates from propane companies
Here are some tips to consider when getting online or in-person estimates from propane companies near you:
Get quotes from several different companies.
Be clear about the tank size you want, where you want it installed, and what other services you're interested in.
Get estimates in the summer off-season to save money.
Ask about annual contract discounts instead of paying higher will-call fees.
Get everything in writing including the tank rental or purchase price, installation costs, and warranty terms.
Questions to ask
When contracting with a propane service, be sure to ask these important questions:
What are your prices?
What service and delivery fees are included in that price?
What are your delivery schedules for my area?
Do you offer will-call services rather than scheduling in advance?
What are your safety procedures?
Do you offer maintenance and repair services?
What size tank do I need?
Where can you install the tank?
Do you offer tank rentals?
We use our proprietary database of project costs, personally contact industry experts to compile up-to-date pricing and insights, and conduct in-depth research to ensure accuracy in all our guides.